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Posted on: June 29, 2024 at 22:13:20 CT
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In terms of inflation, studies have estimated that American households faced higher prices as a result of the tariffs — from several hundred dollars to more than $1,000 annually.
But economists say consumers probably did not associate the higher prices they paid with the tariffs, given that inflation was low throughout Mr. Trump’s tenure and the economy was strong
A recent analysis by the Peterson Institute of International Economics found that if Mr. Trump did impose a 10 percent tariff on all goods and a 60 percent tariff on China, it would cost a typical household in the middle of the income distribution about $1,700 in increased expenses each year.
Another analysis, by the right-leaning American Action Forum, estimated that a 10 percent tariff could impose additional annual costs of up to $2,350 per American household. Adding a 60 percent tariff on China would add another $1,950 to U.S. household costs.
The burden of those tariffs would fall more heavily on poorer households, because they spend a larger share of their income on everyday products.
That could ultimately backfire on Mr. Trump, given that voter concerns about inflation are top of mind.